Number of years needed to accumulate a future amount For the following case, determine the number of years it will take for the initial deposit to grow to equal the future amount at the given interest rate. (Click-on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial deposit Future amount $12,187 $24,600 The number of years for this investment, n, is years. (Round to two decimal places.) Interest rate 8%

Number of years needed to accumulate a future amount For the following case, determine the number of years it will take for the initial deposit to grow to equal the future amount at the given interest rate. (Click-on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial deposit Future amount $12,187 $24,600 The number of years for this investment, n, is years. (Round to two decimal places.) Interest rate 8%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. A. Find how much money there will be in the account after the given number of years. B. Find the interest earned. Click the icon to view some finance formulas. A. The amount of money in the account after 2 years is $. (Round to the nearest hundredth as needed.) B. The amount of interest earned is $. (Round to the nearest hundredth as needed.) Principal $2000 Rate 5% 7 Compounded annually Time 2 years
← a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Periodic Deposit $80 at the end of every six months iClick the icon to view some finance formulas. Rate Time 6.5% compounded semiannually 25 years a. The value of the annuity is $ 9720. (Do not round until the final answer. Then round to the nearest dollar as needed.) b. The interest is $ (Use the answer from part (a) to find this answer. Round to the nearest dollar as needed.)
Find the accumulated value of an investment of $15,000 for 5 years at an interest rate of 1.45% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. Click the icon to view some finance formulas. c. What is the accumulated value if the money is compounded monthly? $ 16127.15 (Round to the nearest cent as needed.). d. What is the accumulated value if the money is compounded continuously? S (Round to the nearest cent as needed.) ▼ X
One can solve for payments (PMT), periods (N), and interest rates (1) for annuities. The easiest way to solve for these variables is with a financial calculator or a spreadsheet. Quantitative Problem 1: You plan to deposit $2,100 per year for 4 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today. a. What amount will be in your account at the end of 4 years? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. Assume that your deposits will begin today. What amount will be in your account after 4 years? Do not round intermediate calculations. Round your answer to the nearest cent. $ Quantitative Problem 2: You and your wife are making plans for retirement. You plan on living 25 years after you retire and would like to have $95,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 12% annually. a.…
- a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Periodic Deposit Rate $1500 at the end of every three months 5.25% compounded quarterly Click the icon to view some finance formulas. Time 7 years a. The value of the annuity is $. (Do not round until the final answer. Then round to the nearest dollar as needed.) b. The interest is $ (Use the answer from part (a) to find this answer. Round to the nearest dollar as needed.) Time
Use the formula for computing future value using compound interest to determine the value of an account at the end of 8 years if a principal amount of $13,000 is deposited in an account at an annual interest rate of 5% and the interest is compounded quarterly. The amount after 8 years will be $ (Round to the nearest cent as needed.) Enter your answer in the answer box and then click Check Answer. All narts showing javascript:doExercise(9); Clear All Check Answer sy Po a 99+
What is the value today of a money machine that will pay $1,548.00 per year for 17.00 years? Assume the first payment is made 3.00 years from today and the interest rate is 7.00%. Submit Answer format: Currency: Round to: 2 decimal places.
Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your answers to the nearest cent. Compound Term of Investment Nominal Interest Compound Interest Present Amount Rate (%) Compounded Value $300,000 10 years 4 annually Need Help? Read It
How much will be in an investment account 12 years from now if you deposit $3000 now and $5000 four years from now and the account earns interest at a rate of 10% per year? Use (a) tabulated factor values, (b) TVM functions on a financial calculator, and (c) built-in functions on a spreadsheet.
The following investment requires a table factor for a period beyond the table. Calculate the new table factor and the present value (principal). Use Table 11-2. Round your new table factor to five decimal places and your present value to the nearest cent. Compound Amount New Table Factor Term of Nominal Interest Present Investment (years) Rate (%) Compounded Value $36,000 36 7 annually $ Need Help? Read It
Hardev
Use future value and present value calculations (an online calculator, app, financial calculator, or spreadsheet software) to determine the following: Use Exhibit 1-A, Exhibit 1-B and Exhibit 1-C. a. The future value of a $710 savings deposit after nine years at an annual interest rate of 8 percent. Note: Round FV factor to 3 decimal places and final answer to nearest whole dollar. b. The future value of saving $3,200 a year for three years at an annual interest rate of 7 percent. Note: Round discount factor to 3 decimal places and final answer to nearest whole dollar. c. The present value of a $3,400 savings account that will earn 4 percent interest for six years. Note: Round PV factor to 3 decimal places and final answer to nearest whole dollar. a. Future value b. Future value c. Present value

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